VOLCAN COMPAÑIA MINERA : First 2013 Zinc, lead and copper concentrates tender for Volcan Compañia Minera

VOLCAN COMPAÑIA MINERA : First 2013 Zinc, lead and copper concentrates tender
                          for Volcan Compañia Minera

Volcan Compañía Minera called its first international tender of 2013 and
awarded tonnages a month after the process started. Despite turbulence in the
market regarding talks about concentrate oversupply in several parts of the
world and rumors about a much higher benchmark figure on zinc, concentrate
demand was very strong and ended up in a very sharp competitive last round
definition. Concentrates offered on the tender were 150,000 wmt of zinc,
35,000 wmt of lead and 37,500 wmt of copper for deliveries during years 2013,
2014, 2015 and 2016. Terms awarded on zinc were remarkable compared to current
benchmark discussions being held days before the IZA Conference. Numbers
disclosed from these talks suggest a very slow market for the miners compared
to results from Volcan's tender. TC levels at current prices were in the range
of mid 60's to high 90's based on a Main Asian Port delivery. On the lead
side, a better market for silvery concentrates was noticed with silver
refining charges closer to the dollar and decreasing TCs compared to last
tender. On the copper side, market has also improved for complex material,
with silver payments above 90%. As mentioned above, this tender results are
contradictory with current market talks for anual contracts, where the latter
will be understood as for terms (TC) specially for zinc should be closer to
the 200's. However, this market view may hide some unbalances certain regions
in the world are currently experiencing, not only in terms of geographic
availabilty, but also quality-wise. The main question is if the location and
quality of concentrates included on the oversupply concept the market is
talking about, are suitable for smelter needs.

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Source: VOLCAN COMPAÑIA MINERA via Thomson Reuters ONE
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